Stocks ease, US yields rise after hot US inflation data shakes confidence in Fed rate cut

Written by Chipoic Oguh and Naomi Rovenik

New York/London (Reuters) -Global shares fell on Thursday, as the shares in Wall Street rose, while US Treasury revenues rose after market expectations for interest rate discounts in the field of federal reserves with amazingly powerful inflation data.

I removed the S&P 500 S & P 500 from the highest new closure of the third consecutive session, while Dow and Nasdaq have finished a little. Dow Jones Industrial average increased by 0.02 %, S&P 500 increased by 0.03 %, and the NASDAQ boat decreased by 0.01 %.

“We have participated in a good trip during the past few days,” said Dan Genter, CEO of Jinder Capital Mander. “The PPI number (producers’ price index) was not something that would have mobilized the market more, but it was also nothing to scare the market in particular.”

The prices of American producers increased by 0.9 % in July, according to the Ministry of Labor, exceeding consensus expectations to achieve a gain of 0.2 %. Investors monitor the signs of inflation pressure from US president Donald Trump’s tariff.

European stocks have gained gains from the day and were 0.55 % higher. The MSCI scale of stocks all over the world decreased by 0.12 % to 951.91, with a break a day after reaching the highest level ever.

“I think the market falls in accepting that the total economy slows down … and that the presence of some confirmation with inflation numbers puts us in a good place for at least 25 points from the point that this market will need to obtain support,” added.

The returns of the US Treasury jumped after inflation data faded with expectations to reduce jumbo feeding rates. Return of notes for two years was 3.5 basis points, or 3.732 %. The return on notes in the United States increased for 10 years 4.9 basis points to 4.289 %.

Money markets have shown that traders are still almost unanimously expecting that the Federal Reserve Bank reduce borrowing costs next month, although some traders reduced their bets. The markets expect a 92.5 % chance that the Federal Reserve reduces prices by 25 basis points in September, a slight decrease from 94.3 % on Wednesday, but from about 59 % a month ago, according to the CME Fedwatch tool.

“We were very keen to conclude that the economy is fine; it’s uncomfortable,” said Peter Andersen, founder of Andersen Capital Management in Boston. “But this wholesale data shows that there may be some work in inflation, and we should not be very fast in concluding that we need to reduce interest rates.”

Andersen said: “This enhances the situation that the Fed Bank may say that we still have a clear picture so far, based on the definitions in the recruitment image to take any action, and I expect to tend to be neutral and no change in September instead of the majority of opinions there.”